Nissan Motor and Renault are close to resolving a standoff about Nissan's corporate governance ahead of the Japanese car maker's shareholder meeting next week, according to Wall Street Journal (WSJ) sources.
The latest clash was about whether Renault chief executive Thierry Bollore should be given a post on a proposed audit committee on Nissan's board, the WSJ noted. Renault threatened to abstain in a vote on governance changes at Nissan unless it got its way. That prompted Nissan chief executive Hiroto Saikawa to issue an uncharacteristic rebuke calling Renault's stance "most regrettable".
WSJ sources said, under the proposed plan, Bollore would get the committee seat though the deal wasn't yet final.
An independent Nissan director, Masakazu Toyoda, wrote to Renault chairman Jean-Dominique Senard with the offer, WSJ sources said.
Nissan wants to create three new board committees – on audit matters, director nominations and executive compensation – to address governance problems that Nissan has said allowed alleged wrongdoing by former chief Carlos Ghosn to go unnoticed by company watchdogs.
Shareholders are set to vote on the plan at the annual Nissan shareholder meeting on 25 June and it requires a two-thirds majority to pass, so Renault's support is essential, the WSJ said.